Consultant: GM-Chrysler deal may cost 25,000 jobs

If General Motors Corp. acquires Chrysler LLC, it will cost 25,000 to 35,000 jobs at the automakers, according to a Michigan consulting firm. But the Anderson Economic Group of East Lansing said Wednesday the alternative of Chrysler being sold in pieces would result in many more job losses. A GM acquisition, with possible help from the federal government, is a likely possibility, Patrick Anderson, the firm's CEO, said in a conference call with reporters.

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GM has been talking with Chrysler owner Cerberus Capital Management LP about an acquisition, and GM has been lobbying in Washington for the federal government to put money into the deal.

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Anderson said the prospect of the government's Pension Benefit Guarantee Corp. having to take on Chrysler's pension liabilities, increased unemployment benefit costs, and the tax impact on state and local governments are good reasons why the federal government should get involved in the deal.